DRC-2009-005884 - 0901a068801453e8

State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieutenant Governor
October 28, 2009
bUL-.^CC^i - CO
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Dane L. Finerfrock
Director
CERTIFIED MAIL
(Retum Receipt Requested)
Mr. Steven D. Landau
Manager of Environmental Affairs
Denison Mines (USA) Corp. (DUSA)
1050 17"'Street, Ste. 950
Denver, CO 80225
Dear Mr. Roberts:
SUBJECT: October 5, 2009 DUSA Letter, Surety Update Revision; Estimate Approval and
Request for Evidence of Surety
On October 21, 2009 we received an email from DUSA which conveyed a letter from DUSA dated
October 5, 2009, which revised the latest submitted cost estimate of July 27, 2009, regarding the subject
surety. The October 5, 2009 letter was sent in response to our comment letter of August 17, 2009. This
information updates the booklet titled Revised Cost Estimates for Reclamation of tfie White Mesa Mill and
Tailings Management System, dated July 2009.
We have reviewed the calculations and hereby approve the annual revised estimate of $15,807,429. This
updated estimate constitutes a $790,300 increase from the previous approved surety amount of
$15,017,129. The increase was mainly due to additional costs for conventional ore disposal, rock rip-rap
materials, contractor's insurances, maintenance equipment fees, labor, and equipment.
The estimate shows an anticipated decrease in the inventory limil for combined feed material in storage.
The current estimate shows a total projected storage inventory of 111,364 tons, a decrease of 24,456 tons
over the 2008 projected inventory estimate (135,820 tons).
We have enclosed two summarizing spreadsheets, our 2008-2009 Surety Comparison Review Summary and
2008 Conventional Ore and Alternate Feedstock Inventory Estimate, per DUSA Supplied Volumes. As you
are aware, the License for the facility limits the total conventional ore and alternate feedstock inventory in
storage to the estimated amounts covered by the approved surety (Condition 10. I.D).
However, as you are aware, a performance assessment study on the tailings pond cover system titled the
Denison Mines (USA) Corp. Infiltration and Contamination Transport Modeling Report, Wliite Mesa Mill
Site, Blanding, Utah is under review by the Division. Additionally, a license renewal application was
received by the DRC in March 2007, and is currently under agency review. The review of the reclamation
plan is an important part of this process. Based on the final outcome of the study, the license renewal
168 North 1950 West • Salt Lake City. UT
Mailing Address: P.O.Box 144850-Sal! Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.iitnh ^nv
Printed on 100% recycled paper
Page 2 IP
process, and review.of the reclamadon plan, the surety may need to be adjusted separately from the normal
annual reneWal sequence. We will keep you informed.
In accordance with (7/1C R313-24-4 (10 CFR 40, Appendix A, Criteria 9 as incorporated by reference), you
must submit a replacement surety instrument consistent with the above approvals. Condidon 9.5 of the
License requires that you submit corresponding written evidence of an adequate surety within 30-days of
receipt of this letter. Ifyou have any questions, please contact me at [phone].
UTAH RADIATION CONTROL BOARD
Dane L. FinerfrockUExecutive Secretary
DLF/dar
Enclosures
F:\dmpp\wp\ IUC\ Surety\2009-10\ApprovedEst 10-09.doc
File: Documentum
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